JNJ - Earnings call transcript Q2 2024

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Operator

Good morning, and welcome to Johnson & Johnson's Second Quarter 2024 Earnings Conference Call. [Operator Instructions] This call is being recorded. If anyone has any objections, you may disconnect at this time. [Operator Instructions]

I would now like to turn the conference to Johnson & Johnson. ahead. go Please

Jessica Moore

year is for This review Vice of our President the XXXX. Hello, & Jessica Johnson. Relations full and results Johnson quarter company's outlook Welcome Investor for second everyone. business Moore, financial to of our

get before the details. A we few into logistics

associated the As reminder, Johnson website investor.jnj.com. and & find the Investor including today's additional Johnson a on materials, Relations can presentation you schedules, section of at

and this presentation the contains forward-looking performance, among business regarding, and things, operating that statements company's other strategy. future note financial position market Please

that You statements, the are results actual using the of these recording risks cautioned not materially may differ of projected. to to uncertainties subject events of date rely current cause those which on forward-looking are the the future as certain and on company's are available from this information based to expectations and

and the risks, Form our can of on and is uncertainties found description which including XX-K, other A filings, our XXXX in SEC's factors website. investor.jnj.com SEC at these be available

Additionally, companies. several strategic from products licensed are today those or partners collaboration discussed other developed compounds in slide being with acknowledges relationships. of This and the

medicine Chairman leaders, Duato, and us before Moving capital to Reed the questions. results CEO, quarter as allocation our overview Taubert, our we additional for provide priorities reviewing tech up will commentary for our the then sharing start today's financial will Schmid, and before it P&L Jennifer Joe provide Tim med well our cash and an joining and Joaquin highlights XXXX. of CFO, I corporation as closing Q&A. innovative open to X for will then by for will related position, be sales businesses. second some remarks guidance our and agenda, Wolk, business and John

minutes. operations the of Johnson today address and Furthermore, enough & the to continuing the percentages the otherwise last webcast the currency will operational questions, provide of results approximately reflect we results impact guidance exclude translation. ensure To highlighted therefore, anticipate quoted Unless represent we XX stated, your time financial Johnson. and,

Turning of and sales X.X%, U.S. XXXX. Worldwide results. outside to X.X% U.S. the of $XX.X second increased quarter the with the our second billion growth in quarter X.X% for of sales Sales were

the COVID-XX was X.X% was vaccine, growth Sales outside vaccine, the impact COVID-XX Excluding worldwide the growth of and growth the Europe, X.X% sales of excluding of in U.S. X%.

to now earnings. Turning

net ago. a earnings billion, diluted diluted $X.XX For quarter, earnings share of per earnings the per were year $X.X was $X.XX share and versus

adjusted earnings asset to earnings compared Excluding was quarter $X.X net after-tax and billion, and X.X% were expense of XXXX. intangible second and the quarter for increases items adjusted the amortization $X.XX, respectively, periods, both diluted XX.X%, for special share of representing per

business sales billion on Medicine. X.X%, X.X% U.S. of performance growth $XX.X the sales of the in with comment with now Innovative of in quarter, I'll beginning Innovative Medicine and Worldwide the U.S. increased outside X.X%

assets impact the and U.S. recently XX delivering our X.X% growth of double-digit the X.X% Medicine Excluding by Innovative COVID-XX continued sales growth driven key operational launched products, of the worldwide was brands from was outside uptake growth. and with vaccine,

myeloma lines all across as points X.X points of frontline in We drive therapy share X.X gains well multiple growth as the continue strong growth. portfolio. by of market was sales to driven primarily across growth XX.X%, and our setting DARZALEX

capacity continued with strong $XXX of million CARVYKTI growth XX.X%, demand. expansion, and manufacturing sales efficiencies of achieved driven by

growth of the to strong, of slowed in $XXX while growth achieved sales launch sequential dosing adoption setting. refractory million a with XX.X%, quarter Demand TECVAYLI recently due strong approved relapsed longer-duration intervals. in the remained reflecting

non-small growth RYBREVANT, cancer. strong share in by growth cell deliver TALVEY, and uptake antibody GPRCXD gains metastatic castrate-sensitive lung and ERLEADA of prostate growth cancer. continued our primarily of for was XX.X%, bispecific; by continues to oncology strong Other market driven our driven bispecific

of immunology, patient saw favorable net patient growth driven market PSO in STELARA of by growth, and growth gains XX.X%, mix. driven was we mix. by PSA partially share and unfavorable offset in Within X.X% sales TREMFYA market by growth,

to month. We later anticipate Europe entry this biosimilar in continue

the largely offset towards we in expect growth, by we move continued in price While volume as U.S., XXXX. entry declines biosimilar

In continues growth physician XX.X% confidence. of and by driven to Neuroscience, patient SPRAVATO be increased

by Pulmonary market In growth driven market inventory offset Hypertension, growth gains partially mix. share X.X% and was partially unfavorable UPTRAVI due share OPSUMIT by X.X% grew and to of growth, gains, by offset dynamics.

sales neuroscience, patient offset partially by growth XARELTO in pressures decline mix was unfavorable IMBRUVICA. a Medicine Innovative other Total competitive in in and

growth was execution, with quarter. in partially sales impact commercial Worldwide competitive in of of of product I'll and and strength MedTech X.X%, your procedure introductions Growth the China new continued sales the driven on and offset performance had of dynamics XX and U.S. to U.S. turn Acquisitions distributor U.S. the by and X.X% divestitures stocking positive vision. volume, by increased strong $X points in pressures basis outside billion attention growth a now MedTech. and X.X% of

In strong previous product procedure Cardiovascular, offset new by uptake by inventory build from onetime delivered in growth the electrophysiology of with growth, across was commercial regions. and all XX.X% driven global prior the quarter. Performance Asia double-digit partially Pacific growth execution,

X.X macroeconomic Blink growth the Impella regions Blink associated strong monofocal adoption U.S. include in ACUVUE the intraocular Surgical family XXX partially Results In strong lens, performance grew in Impella Abiomed basis TECNIS in X.X%, China X.X%. driven which of approximately points. delivered of impacted excluding of and May with sales and lenses Growth negatively Eyhance, VBP our closed technology. divestiture, driven by The addition, Shockwave, and U.S. was partially growth offset by offset was all by of growth XX.X%, and X-Day vision softness distributor growth, adjusted and by RP dynamics products, operational on OASYS million XX. Contact divestiture double-digit acquisition driven $XX by stocking Japan continued pressures refractive by competitive pressures. the

approximately China prior and China products. year by Performance of negatively was points. Acclarent tender XXX excluding EMEA by advanced strength supply constraints growth adjusted recovery, was Acclarent and closure. basis impacted This surgery divestiture, offset was driven timing wound pressures energy competitive new partially approximately the by flat. divestiture Surgery VBP, operational endocutters, across and primarily The growth, in sales

X.X% and growth new China sports. driven of growth, strength tender by competitive of timing of in and offset hips EMEA pressures products procedure knees performance This strong spine was to and in by and was due impacts Orthopaedics partially VBP in knees. growth

by of our consolidated within year. of by have XXXX. macroeconomic Medicine Cost driven the earnings basis primarily points, turning changed last second a like compared Innovative same Now deleveraged across to product products both sectors. sold noteworthy I'd items quarter quarter few of of highlight to mix to the statement for and that XX margin factors

$X.X to to sales invest invested XXXX. billion development XX.X% this Medicines continue XX.X% at quarter. We in levels, or sales competitive and research billion We investing of of $X.X Innovative or compared XX.X% sales strategically in in of

last reminder, AbleData an of year a with associated As included $XXX the million payment upfront partnership.

or continued an in In driven investment investment platforms. X% by of sales, was MedTech, strategic R&D billion increase $X.X

was related in income the XXXX net of to quarter expense a compared was million primarily by of costs The of of and driven was XXXX. expense of in Other $XXX increase the closing in expense the income $XXX completion litigation the second second debt to MedTech. the exchange intellectual million quarter the partially equity in the property of on Shockwave for on favorable Acclarent the the in of loss the offset This settlements gain stake prior Kenvue retained acquisition, by divestiture. year and

audit onetime Regarding tax primarily international our period was driven taxes versus continued effective from same unfavorable was XX.X% quarter, in increase in by last the Pillar impact the settlements This rate the XX.X% Two. year. and

additional on was rate same XX.X% quarter the the for tax-related period matters. encourage Excluding review you versus filing tax upcoming special second to XX.X% year. items, specific I last effective in our XX-Q details

adjusted direct of the we box expense special amortization to tax, and provided slide the earnings attention earnings our your per I'll income to exclude Lastly, impact the and of net section intangible also items. before have where share

partnership Now sold. Innovative litigation increased cost mix payment upfront XXXX, XX.X%, favorable with from improved XX.X% year to tax in Medicine as $XXX partially to associated let's adjusted In segment. by driven points. before an the XX.X% primarily XXX income sales approximately margin products declined adjusted our prior settlements percentage by for from at of second before the from look XX.X% and of worth a income enterprise intellectual property AbleData by margin product by XXXX, to of XX.X%. quarter the MedTech XX.X%, of driven million offset basis tax

This now turn concludes Joe. the the call. of sales over and earnings it to pleased I'm portion to

Joseph Wolk

Johnson for joining quarter. as you growth Thank call. and Overall, Johnson top everyone. today's as well hello, bottom delivered and in the line flow free solid & cash Jessica, you, Thank

made business Our in great Innovative the progress second Medicines quarter.

attained. being continue to with momentum regulatory strong pipeline have milestones and key with We significant advance products and clinical our in-market

range MedTech that that range. which rate below growing from the the XXXX. to Our XXXX in We of of business markets, XXXX growth a X% growth expectations market to as upper end recall, delivered into in correlates of thinking would be through you our our X% weighted the fell year came of average upper

the our second dynamics offset this growth power XXXX. of Jessica one now from me, quarterly breadth company, With acceleration half some expect outlined, reflects To our than with and in part part the in first another for of overperformance more we planned business. half, given of can where we closer the X% volatility to

Medicine, business in reported note, highlights therapy study. overall from provide from survival numbers, we and Oncology, approval continue areas the meaningful Of into across to in lines CARVYKTI line get Innovative we FDA results the earlier some quarter. progress I Before received top our to with focus. of I'd disease the positive for CARTITUDE-X make Starting of qualitative like

a the of DARZALEX an results We will presented and medical major for met We updated where results TAR-XXX, CEPHEUS endpoints RYBREVANT. AQUILA, TAR-XXX and meeting. our X primary also we be in filing and for submitted formulation upcoming subcutaneous studies, presented for FDA with

as make which IL-XX milestones for bowel We of regimen. inflammatory filing in key and colitis including well studies ulcerative TREMFYA TREMFYA only subcutaneous Turning III in the to and disease, with formulation, inhibitor of the filing immunology. presentation achieved our Crohn's Phase would a the subcutaneous as disease, fully

and immunology acquisitions further Proteologix of We antibodies our address ability strengthen portfolio also unmet expanded significant in to and dermatitis. our bispecific portfolio the will our These atopic NMXX. enhance need with

second presented and it disease Finally, nipocalimab gravis. and doesn't for immunology in results Sjogren's we positive myasthenia the neuroscience, spanning stop with quarter. But

of in half and awaits approval for this second IBD. of lazertinib in the year are cancer and We what anticipated plus EGFR-positive lung launch excited the both frontline with RYBREVANT in TREMFYA

ulcerative We our therapeutic in and co-antibody in in nipocalimab data oral JNJ-XXXX, our peptide and arthritis. JNJ-XXXX, targeted rheumatoid expect also psoriasis from colitis; IBD;

to near sustainable bring term. long growth to market in is Medicine and and innovations against to the Innovative new positioned As well and milestones, we clinical continue regulatory achieve execute both

to Turning MedTech.

portfolio. In pipeline, strategic to we our acquisitions integrate Medical. acquisitions, continue broaden growth We higher through further are our our enhancing and Cardiovascular, into advance shifting products markets Shockwave commercial launch differentiate and that as and portfolio strategic such new

system. Version capabilities accuracy to May, electrophysiologists announced our the reproducibility has mapping other latest XD CARTO our In machine we of atrial and X X use This version the is heart in launch arrhythmias. learning mapping of efficiency, fibrillation system, which maps treat increase that and electroanatomical

ablation, in the In the we physician external Japan, EU of and pulse period. feedback platform initiated VARIPULSE launch the positive evaluation field commercial in early the receiving

medial This results also application to We precise low trial, events, phase a effectiveness adverse exposure. In placement times received demonstrated the we is arthroplasty. Robotic-Assisted application admIRE the clinical lateral the platform for without of of delivered primary VARIPULSE VELYS procedures, and and Solution where the CT enabling clearance both pivotal surgeons short XXX(k) guide with XX% knee PFA Orthopaedics, unique in fluoroscopy designed from implant scan. minimal for FDA peak the compartmental

gripping shown surgery, and outcomes. which to surgical risks launched combines In staple in XD security. the to improve stapling deliver fewer U.S., enable the leaks, surgical surface has and we been line XX% greater ECHELON This XXXX reduce technology

launched we Odyssey head market half vision, and of surgical second the the XXXX. in into launch U.S. a TECNIS In full in

of ECP the track submit for For U.S. well as prepare on submission VARIPULSE approval to year, robotic our the anticipated we will FDA as an continue to in the cardiovascular and the investigational regulatory half the of OTTAVA we are of for approval. remainder we exemption surgery, the year. Within electrophysiology as pipelines for second of the device Impella to advance

the guidance, Before cash flow turning on provide wanted litigation. to update an and to talc I

of X, the committed has approximately present over to $X talc or ovarian lawsuits nominally a and years, affiliates States. all value of company the announced on XX billion May its billion XX.XX% $X.X resolving pending claimants pay in United the As company against

the regarding to first are We scheduled The vote plan. XX. for able or voting are few where, we voting is to vet for administrator period make the claimants themselves Once a the process for currently announcement prepackaged for It concludes, in July for steps a take against plan on for of to last bankruptcy a weeks that tally the time, day and public vote votes. the a then the will plan next filing.

is as Our firms support confidence plan representing of additional prominent majority counsel well requisite as XX% that Miller. with bolstered Postman and support whom the we by of plaintiff of the vote was Aylstock, developed will reach by claimants the law the continued announcement the recently, Keller including vast

claimants, continued Additionally, goal announced to progress XX% in the states furtherance talc owners second make agreements entities, all of comprehensive with claimants Imerys that settled. mines with finalized and supply the mesothelioma of talc Cyprus that previously advanced In company. quarter, solution, with claims now we of our a achieving the to reached the of we and the

We $XX billion net prior of with debt cash billion. in the Turning cash of Consumer period, marketable year debt second compared approximately $XX $X.X and year-to-date the position and to capital Health cash and cash billion approximately approximately to business. included allocation. flow which from quarter flow billion was for $X.X $XX of securities the ended billion a Free

bringing During billion. secondary the the our the we were Kenvue, from retained offering quarter, exited $X.X net The to close. in a stake proceeds separation

priorities strategically We balance business, grow in our allocation strong us capital returning Our while maintain enable continues remain sheet, shareholders. and to a to unchanged. our capital which invest to

billion $X.X of XX.X% in sales we our to core and research invested than development. remains In second more or the quarter, Innovation strategy.

complementary Proteologix half of acquisitions XX transactions. the $XX first the approximately bispecific NMXX terms Johnson well Shockwave, during development than and has value-creating In deployed strategic transaction in XXXX, licensing, inorganic growth & smaller of and This as last more Johnson antibody week billion other opportunities. announced as business includes

explore that always strategic value, near deals over create will modest foresee can size route tuck-in the any as we term. preferred While deals of we the

guidance. turning Now to year our XXXX full

share. Given acquisitions usually the with the per this I end quarter, parts start moving associated where earnings I'll with

our performance impact increased. Before once of EPS the outlook recent acquisitions, again adjusted for being is operational

in at schedule increase result we performance. a This this our would per reflects, year-over-year expecting operational X.X% in midpoint. growth are $X.XX share the EPS As of

includes adjusted of To antibody Shockwave, for disclosed, Proteologix and guidance EPS account and the per completion bispecific $X.XX previously operational the NMXX our transactions, now of as dilution share.

an range per share. guidance this the $XX.XX of yields $XX updated Combined, EPS all to of adjusted operational in

$X.XX In a to addition, assist to adjusted future your operational models, transactions these in with are expected have smaller XXXX. to impact EPS of

Now for to of guidance address all elements XXXX. P&L

to reminder, a vaccine sales. COVID-XX sales As from guidance our impact continues exclude any

our million of guidance We Shockwave reflect completion year sales by $XXX for are the the the operational increasing to acquisition. full

or midpoint range We of XXXX midpoint. the to billion compared X.X% now expect a the X.X% with in to of $XX.X X.X% growth at

the we growth Excluding to adjusted to to are the sales of acquisitions impact from XXXX. divestitures, X.X% compared X.X% and maintaining operational range our

movements. future speculate on As you currency we don't know,

a U.S. of the spot utilizing rate are dollar with consistent last X.XX, euro quarter. We to relative

of notable versus the have and specifically Chinese yen there U.S. currencies, the dollar been other Japanese strengthening yuan. However,

we resulting As year an a foreign currency a estimate $X.X impact of in billion. million, incremental full negative impact of result, $XXX

As the reported midpoint acquisition, sales to billion between X.X% such, a with Shockwave growth. expect combined X% to XXXX, growth or with X.X% of we $XX.X compared

transactions, the our by we P&L. offsetting decline than adjusted Turning points, XX point dilution operating Based basis communicated XXXX margin pretax to the improvement. the now the on to from previously basis of the more solely rest anticipate XXX

range $X.X guidance performance. million, lower increase with an be driven Other associated recent of guidance, million of project in $X.X to interest by net year-to-date the between is acquisitions. a $XXX by income our billion, than billion anticipated versus financing driven and to income previous We interest $XXX previous expense

announced Our between effective acquisition. the the well higher due antibody and NMXX recently OECD tax of Two largely rate for to XX.X% XXXX, much be is nature impact the year, XX.X% the bispecific as now expected of nondeductible than to full Pillar as

While to quarterly provide provide modeling. like on some by a support considerations or we basis, to I'd segment do your not qualitative guidance

lower second expect the in by of partially growth from STELARA biosimilars recently our to the continued last Europe sales week half products. of the year Innovative of the be July. headwind This anticipated compared half to given continue the entry offset be will to in launched first Medicine beginning uptake We

COVID-XX the vaccine anticipate we in sales had While do quarter, second not we future sales. any

worth expect this Europe for Finally, quarter. sales it transfer, third rights noting be Europe. and is in In that fourth REMICADE for distribution returned in quarter we in limited the preparation SIMPONI will

to MedTech. Turning

This line products of in the continued by by contact into to recovery half the evidenced stated, previously QX, commercial second Shockwave accelerate will the and be growth including execution new long-term growth lenses, improvement segments, expectations our sequential with year. monthly of integration and expect within expansion of high-growth back in driven in across the As we further portfolio.

adjusted As our month. IP second be this later transaction the NMXX the the this compared Again, antibody in as to margin, is first of in the about of R&D QX higher well to due half. year biosimilars the operating it to we you the think in STELARA half as for continue expect Europe bispecific entry anticipated charge to

August on share from resulting Lastly, following reduction in the third as the share count, exchange fourth quarter a benefit the neutral. count only a of Kenvue the quarter being XXXX, partial offer we in with expect reminder

focused differentiated and our shareholders. We long-term growth on milestones we move deliver our across portfolio forward, in Medicine sustained for confident As regulatory value remain and Innovative key and and achieving MedTech. and remain customers advancing we patients, clinical to ability

before taking remarks that, to pleased your for the questions. to now am turn I over concluding Joaquin With call

Joaquin Duato

about XXXX. With a quarter, and second Thank I'm you, the hello, of excited strong rest Joe, everyone.

above-market growth. on business a of is XXth consecutive Medicine for Innovative year track Our

first-in-class oncology, innovative and by the of medicine. reinventing portfolio Our lives. transforming the many of medicines, board, neuroscience, a potential paradigms the treatment and change driven immunology, we success of are practice which to best have Across is

Joe growth mentioned, the through XXXX have In our on particular, that I highlight sustained major and we drive will pipeline. horizon As made like would progress X beyond. significant milestones to across help

First, the meaningful data cell STELARA. represents of approval IBD, approval of presentation sales a non-small bowel which the of for XX% and from STELARA or inflammatory follows disease, launch approximately TREMFYA, lung and for launch cancer. in of of treatment second, versus come lazertinib superiority today IBD. first-line recent And demonstrated RYBREVANT opportunity TREMFYA the that plus This EGFR-positive as

have data of than $X to for and expect regulatory in that also many We year assets generate milestones more sales. the peak we billion

the pipeline long-term so As portfolio trajectory. too progress, and in and our growth does our confidence near-

to decade. We through are and the ability STELARA grow the through entry accelerating half biosimilar back momentum confident of in upcoming our the see

year-to-date MedTech, In X.X% as we of sales into reflects portfolio progress adjusted continued with the growth higher-growth move operational markets.

of As from in to growth year. heard the expect you half the net we Joe, second accelerate

new contact Growth will X-Day continued Europe through in ACUVUE Odyssey VARIPULSE and in lenses, accelerate the products, expansion Japan. MAX TECNIS and of OASYS including U.S.

the from acquisition, Shockwave close business second Abiomed high-growth outcomes unchanged. of meaningful dangers remains look the trial outlook quarter Our we the With expansion MedTech into of confidence markets. in the and to in continued forward

enables strength. the a is balance into the accelerated Johnson As to Johnson second half unlock medical next and We're move sheet investments innovation. building industry-leading on wave of a laser us of science with best advancing XXXX position you and from healthy the strong a growth to This & of in innovation. know, on foundation focused

for the open let's questions. line that, With

Operator

Instructions] first JPMorgan. from is today Our coming from Chris question [Operator Schott

Christopher Schott

key product Maybe But of RYBREVANT. the Joaquin, I J&J's just milestones one for enthusiasm the company. there's this is a seem that know, Street. a between a does question where like you and mentioned the disconnect upcoming on

light take upcoming time just you of in on your of can So the at some we et saw the see confidence you subcu product and can ASCO maybe over which in that RYBREVANT how talk about setting? frontline label cetera, expansion, the data, dosing, just evolving this share

Jennifer Taubert

quarter a I for over shout-out to digit around a world quarter, terrific into that. I that quick Chris, internal for Real Innovative the $XX billion-plus get quick question. before thanks the much we first our hit Medicine to in XX all just it's Jennifer. wanted with And so my products growth. give colleagues

really, forward year to So looking as quarter, really tremendous great and well. of a the half

to plus in very are the frontline really data RYBREVANT believe excited going it's So we're about lazertinib non-small and and we place a cancer. have that seeing cell significant that lung

lung even before, cell there's significant discussed frontline non-small second-line making never therapy. with a X/X about need of we've unmet As in cancer, it patients to

medical So need. a are of that lot patients there high unmet with

When that really to we add PFS been together, data the in in new that that to for you patients able we frontline have winning setting. take brought think, a subcu to generate forward the of dosing, and our terms going at on a combination data when we've look that we're we

need, And that subcu going the a So combination. to really great think, we unmet dosing, seeing. high is spectacular be results we're

Operator

question coming from Larry Wells Biegelsen from Next Fargo. is

Larry Biegelsen

we Tim, into deep maybe -- dive MedTech. do can deeper a

about the businesses Just second and drove for and markets about J&J the which the you thinking see what talk you XXXX reduction are the expected in MedTech second why. half in and growth half, the improving in do MedTech how in end

Tim Schmid

you thank question. the Larry, for

way, Let tougher full committed very fact at we it saw for year for was was which us, China given And that remain as our you 'XX market of delivering that last Larry, quarter, at in opening and this know a we you And XXXX. quarter important the to this the fastest-growing for time actually, us. year the the We last be when actually second by an clear. the growth up look knew expected. the year, quarter. market, me is solid absolutely QX, That around was

our of very in China, is now vision; transparency, which is below businesses that all market. heard performance volatile or one comments X expectations. the had initially Now been Number have and secondly, as you earlier, performed there have our business that a -- right X areas in in

macroeconomic challenges some well initially we challenges vision, some in the competitive in the quarter U.S., Japan. pressures Now distributor here stocking first some in as announced in with as dynamics

that sequential the in that me the actually quarter. saw gives through turnaround second of improvement is confidence we business What

April, of business. rebound but mentioned into dynamics we that on bled I those month, month Some saw of stocking strong

end quarter, back In fact, of levels. to the the to historical

back And primarily the able be by half so bring innovation. to year, business start to historical that we're there, we're of very look to slower the we been back it's that while driven confident to going a norms, as

and X-Day as Our premium launch, of and ACUVUE the global the as here MAX AsiaPac in well well as IOLs that PureSee portfolio OASYS addition in our as TECNIS EMEA Odyssey with U.S.

we got so And we under that control. believe

to look answer the way, I normalized was growth not -- more question to back impacted your half, are vision. see starting to in When return also China. normalize. more especially is, the confident by slower to -- within directly, We start, the that a But by the we business firstly, reason all surgery that in that only

the year. surgery divestiture by remember, results our of were also in impacted Acclarent And last the business,

half normalized digit so growth back at actually the grow growth was single see of -- adjusted closer the And our to year. operational We continuing to to low flat. that

driven VELYS. strong solid Ortho be the in of proud by driven by especially knees, and We're in continuing almost within hips, tremendous results innovation, XX%, in results that see to X%;

year. broadly, confidence with first got of And end that's the of remember, today, year real the the our And EP business and for Cardiovascular $X XX% we've grew an then Larry, our half XX% last more growth portfolio. that I'll billion in

in fact, competition quarter, business we the second of In face here XX%. U.S., the in grew in the that

grow to leadership And that position. so we're in ability confident our very

still expectations, the deal Abiomed our finally, of ahead XX.X%. then of continuing grow addition to And

where the to showing landmark which results, Shock that for the by portfolio. first I to be of DanGer open continue XX study going have bolstered markets the survivability will new benefits Impella, time we that's think years, in

Shockwave in are very we end very, will XXth We really & sales they we and announce $X transaction shortly timing the that that I'll by billion Johnson excess that be how delighted order, with are closed of finally, welcome business then record annually. And in will the Johnson. with to, short fact in excited to

comps, And very quarter, those and solid to confident year tougher reasons, while second primarily Larry, so due for XXXX. second remain -- a we all

Operator

is next Chen coming Our from Cantor question from Fitzgerald. Louise

Louise Chen

to how efficacy mechanisms on about your the and do presented your compare of And nipocalimab actions FcRns data versus of product contrast Wanted you ask Phase and that durability you and you III market? the other recently.

John Reed

in important Yes, here. question. for Well, John excited nipocalimab. control, Thanks The show really we're the Sjogren's we sustained data disease data really with some regimens about so Reed which used that our seen delivered secondary intermittent endpoints, regimen by is compelling. as dosing across compared efficacy And by consistent et the we've all dosing to others. the of primary cetera, is really

As we advanced be on the may ever has first disease Sjogren's you that guess, seen. for therapy

As a in X life. the around the people affecting, very people impacted X prevalent estimated, that's million it's United women disorder right perhaps you know, of million world, in XX% the are States. of the prime

first So about therapy possibility the of the we're disorder. forward for bringing really excited advanced that

Jennifer Taubert

coming from actually segments in maternal-fetal. are effect we've to X in all out. prevalent in development, over XX concept diseases, what from we all the Maybe of where I that's proof we're as to And got can FcRn add room in the diseases. of by excited autoantibody last demonstrated the rare a couple of things on data clinical And months, nipocalimab autoantibody-driven well really that's we've only X because we're seeing blocker autoantibody-driven

a bringing at for we're asset this this $X coming of terms take market, as to the even all So forward we that's a that as that look us. more billion-plus is we data -- convinced are confidence today in

Operator

from Rick coming from is today question Wise next Stifel. Our

Frederick Wise

system. could talk really a full PFA about Obviously, I If is broader first the this of competitive launch bit quarter seeing business. a a where we're EP the little

the the is X us maybe launch this you're and your outlook affected launch you broadly being on here. and if impact on the launch the give and X how half help second color Version system. You us seeing could updated us better But growth more for on of understand CARTO EP

that competitive I'm impact catheter don't you and was Webster? us give by was specific maybe strong, Can the macro but system. color assuming know, the the -- mapping maybe I Biosense business growth maybe pressured help on

Tim Schmid

is Of billion really electrophysiology recognizing course, patients. that for good Rick, a And growing a PFA tailwind market. we start and Rick, the us It is as thank that that's with the $X I'd And question. good earlier, mentioned and really believe market for I entire for year-to-date. you today, for firstly for XX%

see in now the We're the me our competition, to clearly time especially let and clear. be And between confident. U.S., especially PFA market. We some here technology we that bring

to control year end While year. or we of the next we timings, expect that the the have by early don't

As EMEA business. fortunate approval in to EP we are from have are you a PFA and in very already actually commercializing our very we And technology Japan. benefit know, and global

is safety in that confidence us in we that like to EPs we're what about RF. of a the Everything safety PFA clinical they durability of relative gives we of efficacy, is product. the role play technology. What have the Larry, portfolio, so RF, hearing future, the and years by What that in has world, like leadership they which believe the is from about the does way around PFA while XX also the

in Rick, is today, for even fact, where in used, conjunction. is In used U.S., the X every RF here PFA procedures

technology. excited And and launch XX position of built we're RF then, so leadership years the we will both believe obviously, that that our by the over continue, PFA we last in

our XX% our the You'll at PFA in admIRE conference HRS the results the know primary that showed May, study, -- effectiveness announced effectiveness relative of of which we technology.

shot. out both focal, continue employ to RF, are building large strategy offerings, and which to dual single in of And same is broad focal portfolio energy, the did we PFA going we a in

one This within is for STF this an quarter And in and of for RF. today, application the the PFA on that first our -- catheter Did our you'll the second and catheter year, we that you CE Dual-Energy announced will technology. both mark used for a are catheter be know #X know we used, Catheter. -- market

reasons of got CARTO. a we've your to I to so touch on believe. think lot point And on And

really each of source is our who clinical And One base X every world day. just energy market. cath around It the our in not benefit CARTO complemented by and and systems We Version portfolios, lab of the of every of the also that installed specialists just the in software. our EPs catheters, trained it world. are best-in-class X,XXX the is launched around highly that's supporting

we and marketplace. good the that. to a thing to And It's so benefit expect continue tailwind, again, on once PFA for a is

Operator

Terence Next Stanley. question Morgan is coming Flynn from from

Terence Flynn

if XXXX, also Part for for you and me redesign as thoughts. of on then we're IRA. close on And high-level Great. in just of the decision. impact getting to any some perspective disclosure XARELTO, Was negotiation Two the IRA offer the D pricing can wondering just parts STELARA

the the confidence second hyaluronidase be relates the will question than of part FASPRO to component your given And just DARZALEX that looked at DARZALEX separately there.

Jennifer Taubert

for so FASPRO maybe have confidence than part good Thanks question, do very second much separately the that first. treated We is IV. DARZALEX the I'll answer and DARZALEX

strong perspective so continue forward And that. that yes, on with we

XXXX. at can we of kind in impact time, In been what anticipate if we unfavorable going net we impact that D redesign, what's externally say and we're take terms a Part the is at this on, look IRA a quantifying not of while do

guidance already that However, then at last included enterprise in out anticipate November, as review X% these that provided. XXXX. and year to numbers growing outlined our business business next we we as actually X% X% are a do plus And through

it we to as pertains thing pricing the government still are that. in process, Same

have in have from this process, in IRA That been received us provided the We're that EBR. setting the today. included price disclosing alignment And very good It's We September time. consistent numbers last very with That will in disclosed we the are the that government. while at be the those numbers time at year still not looks and to we final frame. guidance today. not

John Reed

quarter, positive is X setting, entirety as of in I across in you that Since with this large indications, that, myeloma we a Phase DARZALEX, remind maintenance frontline, including studies transplant-ineligible I defying delivered the you mentioned as including amyloidosis. DARZALEX smoldering including additional condition diagnostically just transplant, here, thought and of John number would after in maybe actually, Reed a III

momentum the DARZALEX. with So continues

Jennifer Taubert

And we and had XX% sales growth, $X.X billion in growth. XX%

yes, So our largest is corporation. asset DARZALEX now for single the

Operator

from TD is coming question from next Our Cowen. Jennings Josh

Joshua Jennings

utilization the for I hoping MedTech to the on volume side touch just on There trends was sector. been orthopedic and the some outlook half. particularly there's for procedure concerns that and tough in have back comps some

acceleration where portfolio. was for maybe And and your into pricing your outlook environment pricing half. how if device the But in MedTech just the pricing touch hear I for just then back on and stands outlook to blended that's the also, you hoping and the could

Joseph Wolk

very will be And and brief I my question sort before. Josh. Sure, what with to answer volume of think consistent your shared we've

and we've to that end back volumes mention across the consistent some We the seen expected within tailwinds normalize. did We that, in remain the -- we we but well will the the within in we've we of X% Orthopaedics our perform for see that. our the seen backlog portfolio, belief year. growth normalize X% markets that For to the expect part, the some in of most half to from first that in half. And

As it not I that we world. benefit of nature lot we has relates put of preferential we been inflation global business. a the think and across industry, secure from can to really our effort to ensuring friend do pricing the into have our a pricing,

pockets differentiated are VBP really especially that cost like there of we premium opportunity innovation. we to China, a managing, While pricing, tremendous we're containment efforts have see secure in where

that opportunities significant now need, ensure to with in Shockwave. there truly for electrophysiology, heart like especially for And Abiomed areas in that innovations, pricing entering is we recovery of tremendous recently more we're us especially unmet differentiated and areas secure like with cardiovascular premium

Operator

next Our coming is Dave Partners. Risinger from question from Leerink today

David Risinger

pharma to comment exposure J&J than please plan in rebates typical to plans greater efforts order the in on extract Part you offset XXXX U.S. Could XXXX? in to in D losses years by

Jennifer Taubert

for planned process for all and still payers that. XXXX the working for of We're the the with on and Thanks XXXX. question formularies everything in

that is at important guidance most provided we the back really what's EBR to last go in think the November. I year to

guidance in the the XXXX as the feel of growth. think And we X% happen. a corporation, at through X% And in really, growth decade, will we the factored very X% importantly, anticipated and that an take have out what accelerating plus as confident the to growth organization, we and we in look of end

Joseph Wolk

that with quarter John, innovation quarter the Medicines underscores out in, had also and X that last we've certainly I'd really a Innovative too Jennifer and success remind over to team, the that compliment years, the business. Dave, you our performance in

number, price XX% gravitates that number, rebates price. not years compared but number, Today, an as list about and this to J&J industry and was Discounts XX%. towards a list of X that just is ago only

that we get we difference a to this is sure gets access innovation discounting them through provide. -- make and have and they great happens to makes that what lives want patients already in and the So their

Operator

Next question is coming from Danielle Antalffy from UBS.

Danielle Antalffy

Just a quick China. MedTech on question

surprise So contributor that evolving VBP, China like you no going China, guys things as in are just some all and evolution in are the forward This curious issues, that. a of like given about sounds China. about how But market to things anyone. thinking it is the

forward? change How meaningful? driver evolving It's you been the think to strategy does to How is J&J, there? about China the growth historically. going a to have guys market for big And do for adapt it we

Joaquin Duato

It's Thank you, Joaquin. Danielle.

So we decades. operate companies that first for been one started we've of in were China China, to the in and

So China, we for engagements have history that we a are constructive of looking with forward having to continue. and

in both important recognize the China driver, as business an and continuity situation, But robust are Innovative MedTech for exposure. we for Now growth to have business. business we see and to any mitigate also place, our Medicine we continue planning practices potential able our and we

in and how MedTech some that MedTech our China address had you forward. on see we business Specifically, Tim moving questions can

Tim Schmid

XX% quarterly a are than the And I us to that across global flexibility of world. and Sure. the more we revenue that of really occur think out challenges fortunate on a And U.S. the number of have to our a business with gives basis already yearly Danielle, manage

point, we've in for Joaquin's been years. China XX To

in end second why our lease, at came impacted, reasons has and the in of opportunities. we've we And when when commitment multiple headwinds out is the and in we the quarter. look successful remember, COVID lockdown, navigating China, had so of at our we ongoing of been One performance that our results

ground, really is you happening the when on X factors. there's at look But what's

impact is government-driven price, time a is impact And believe the far seeing position in of which do pain VBP, we got a we're that are that volume over leadership certainly short-term we but China, the containment offset as given will seeing that effort. you've a short-term are cost our We Firstly, the on enduring. tailwind. opportunity

the by exacerbated been anticorruption campaign. also has That

on may an know an government the volumes impact and July in that health from year, has You had professionals. anticorruption last procedural of actually which both campaign, engagement initiated care

see across that behalf We a the and good thing. is really aligns we I build the we of to health compliance any good into Now this and commitment any participate markets in. competition all as integrity that must thing with our for of and a government compliance system effort reiterate fair our in on really to credo believe more which

J&J. we headwind, us on the the remain of really a navigate we and pricing And always as have will absolutely ground We for So day. we some we China. each short-term term, Thank you. challenges really X.X geopolitical committed but our for industry good it's long and remain every to the continue, rely billion And good challenges. and have, committed patients to with who on to

Operator

Goldman Next is Chris from Sachs. question today from Shibutani coming

Chris Shibutani

that expectation genuine demand that's destocking inventory colleague, going environment understand to that to demand question would your the happening we fair trying that were or help had of been tougher Can related market Roman, dynamics us and versus better ahead deceleration that this strengthen. We're and my of put with Together anticipated of a together amount helpful. comments David with juxtapose MedTech an you the inventory reconcile outlook. made a outlook about perhaps potential and notion be just would acceleration That a destocking forward. stocking, a

Joseph Wolk

mentioned seen bleed into some the Thank earlier. our really challenges, The -- where the reduced U.S., in on in back a supply here it's that is now quarter we have we business. first you. we've the a of that inventory have historical and the seen quarter that the recall business destocking second And lens was chain we as you'll contact mentioned in distributor

the so stocking significant that of is business. impact And has our had that on only area short-term a

we that improvement quarter, patients. what gives as that actually is that sequential full we portfolio. across the needs through serve the million second I XX mentioned saw confidence of we us earlier, As look Remember

U.S. and have, away, contact here We with in globally position market and by leadership a lenses. far the

be to And a so in contact we longer by means on see lens. blip impact and to a continue no our as this leaders ability

Jessica Moore

have Kevin, one question. for time Thank last we you, Chris.

Operator

from Wuensch Joanne from coming is today question Citibank. final Our

Joanne Wuensch

that I'd an price, little that and growing new how question. and sort a something of of faster wrap up Could or And the with you products patient us are to give knees like day. great Orthopaedics idea Hips have volume, maybe historic a an rates. unpack is much than bit of else?

Tim Schmid

Joanne. You you. Thank too,

the the the so I incredible proud more that platforms of, to you world for frankly, We growth referenced. resurgence and to X return of high be across across the are grateful as really solid couldn't Orthopaedics, effort

to to enabling how your for leadership indicative first quarter, in in And position our Specifically able I direct all like based. innovation and That continuing we've hips, implants, not U.S. second only best-in-class ever, for to quarter is first in time question, hips growth in saw market answering working mentioned the here KINCISE. were the It's X% but also technologies, you really it's surrounded this Navigation drive is those in it our VELYS be and declare within we patients. our with innovation Hip the the

team, the almost On shout knees, to another growth. out XX%

and that knees driven seen markets. XX once than roughly more by VELYS for again system have haven't historically we In innovation. We a into X.X-year period, our launched short

and of procedures, driver performance. the that key our is We have more than XX,XXX

looking us And know to also confidence indications. in you are second may portfolio. XXX(k) build that we we're the what approval for that to received build Knee. And we Uni our continuing quarter, gives out is VELYS And

And to especially parts of Orthopaedics in commitment in spine. order, the portfolio, to really will other you robotics our about news see short bringing

all innovation And continue. so and again, it's driven, you. once to it expect we Thank

Jessica Moore

because any and everyone We couldn't remaining may reach to hesitate continued out but interest have. Relations Joanne, your those our Investor with your of company. to you thanks to don't to apologize to team you, time, questions for Thank that get questions and the we in

remarks. over call I the will closing Joaquin to turn brief some now for

Joaquin Duato

I'm for joining remainder and energized look we as also towards we everyone, of the you, progress I'm the the of And today. proud to of call first the half the through heading year. XXXX. Thank XXXX made

dedicated care innovation. As wave positioned of medical the uniquely health to next company to we are lead technology the only both and pharmaceuticals,

innovation of second into of advancing our the you. the half continue bringing patients Thank year and position portfolio We strength, to are a entering diverse from the pipeline we serve.

Operator

quarter This Johnson second today's call. conference & Johnson XXXX concludes earnings

You may disconnect. now

Johnson & Johnson (JNJ) 17 Jul 242024 Q2 Earnings call transcript